CRS key terms

The National Association of REALTORS® set of professional conduct rules covering duties to clients, the public, and other licensees, enforced through local association hearing panels and sanctions.

A legal obligation requiring an agent to act in the client's best interest, including loyalty, confidentiality, disclosure, obedience, accounting, care, and reasonable skill.

A legal relationship in which a broker represents a principal and owes fiduciary duties; it is created by a written agreement that defines authority and scope.

A transaction in which one broker represents both buyer and seller after both parties give written informed consent; permitted only in some states and tightly regulated.

The uninterrupted series of efforts that leads to a completed sale, used to decide which broker earned compensation in a cooperative transaction.

Federal, state, and local laws that prohibit discrimination in housing sales and rentals based on protected classes such as race, color, religion, sex, disability, familial status, or national origin.

A federal law provision barring giving or receiving fees, kickbacks, or things of value for referrals of settlement-service business, with narrow exceptions and heavy penalties.

The level of diligence, knowledge, and skill a reasonably competent licensee would use in similar circumstances; failing it can support a negligence claim.

A situation where an agent's personal, financial, or family interest could improperly influence decisions for a client; it must be disclosed and managed or avoided.

A written contract between a seller and a broker that authorizes marketing the property and states the agency type, term, compensation, and duties.

A listing agreement giving the broker the right to earn commission no matter who finds the buyer during the listing term, including the seller.

A listing agreement in which the seller keeps the right to sell without paying commission, while the broker is paid if another agent or broker produces the buyer.

A written contract creating an agency relationship between a buyer and a broker, defining duties, compensation, term, and whether representation is exclusive.

A cooperative database of property listings shared by participating brokers to market homes and offer compensation to cooperating brokers, governed by published rules.

A listing broker's offer to share commission with another broker who brings a ready, willing, and able buyer; the offer is published in the MLS.

A listing arrangement where the broker's commission is whatever sale price exceeds the seller's stated minimum; often banned because it creates a conflict of interest.

A broker's opinion of a property's likely sale price based on recently sold, pending, and active comparable listings, adjusted for meaningful differences.

An independent, defensible opinion of value prepared by a licensed appraiser, typically following USPAP and required by lenders before making a mortgage loan.

The most probable price a property should bring in a competitive, arm's-length transaction where buyer and seller are informed, willing, and not under undue pressure.

The pace at which available homes are sold in a market, usually calculated as sales during a period divided by active inventory, expressed as a percentage.

The number of months it would take to sell all current listings at the current sales pace; a supply measure derived from the absorption rate.

The use of a property that is legally permissible, physically possible, financially feasible, and maximally productive, supporting the appraisal's value conclusion.

A valuation method that estimates value by analyzing sale prices of similar properties and adjusting for differences such as size, condition, location, and features.

The number of days a listing has been active before it goes under contract, used as an indicator of demand, pricing accuracy, and market tempo.

The sale price divided by the final list price, expressed as a percentage; it shows how closely a property sold to its asking price.

A binding contract for the sale of real property that states the price, financing, contingencies, deadlines, and obligations of buyer and seller.

A buyer's good-faith deposit held in escrow and usually credited at closing; it may be forfeited if the buyer breaches the contract.

A contract condition that must be satisfied or waived before the sale can close, such as a satisfactory inspection, appraisal, or loan approval.

A neutral third party's holding of funds and documents until contract conditions are met, after which the items are disbursed at closing.

A federally required form summarizing the final loan terms and closing costs, which the lender must deliver at least three business days before closing.

A response that rejects the original offer and proposes new terms; it shifts the parties' roles and must be accepted or rejected by the other side.

A written addition or modification to an existing contract, signed by all parties, that becomes part of the agreement and can override conflicting terms.

A set time after contract acceptance when the buyer may investigate the property, title, and financing before deciding to proceed or terminate.

The division of earned commission between the brokerage and the agent, and between cooperating brokers, according to their agreements.

A broker's written estimate of a property's value or likely sale price; it is less formal than an appraisal and often used by lenders and servicers.

A written roadmap describing an agent's specific goals, target markets, marketing activities, budget, and performance metrics for a set period.

Customer relationship management software that stores client contacts, communications, and follow-up tasks, supporting lead nurturing, database marketing, and repeat business for agents.

Activities that create prospective client inquiries or names, such as referrals, farming, online advertising, open houses, and social media marketing.

Compensation paid to a licensed broker or agent for sending a client; it must be disclosed and paid through brokerages, not to unlicensed persons.

Return on investment, a ratio comparing net profit or benefit to the cost of an activity, used to judge whether marketing or business spending is worthwhile.